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Everything you need to know before buying real estate is included in our Malaysia Property Pack
Thinking about buying a 3-bedroom apartment in Kuala Lumpur? It’s a vibrant city, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other areas like Petaling Jaya or Penang where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Malaysia Property Pack.
Will property prices increase in Malaysia in 2025?
Yes, property prices in Malaysia are expected to rise in 2025, driven by a combination of economic recovery and increased demand in key urban areas.
Backed by our fresh, in-depth market analysis, we’re confident that Malaysia remains an attractive market for both local and international investors.
While there are challenges such as inflation and potential interest rate hikes, the underlying factors supporting Malaysia's property market growth are strong.
Urbanization and infrastructure development continue to drive demand, particularly in major cities like Kuala Lumpur and Penang, making significant price declines unlikely.
Signals pointing to a property price increase in Malaysia
Here are some factors suggesting prices could increase:
The Malaysian government is expected to continue its focus on infrastructure projects, such as the Mass Rapid Transit (MRT) expansions, which will enhance connectivity and increase property values in surrounding areas.
Economic recovery post-pandemic is anticipated to gain momentum in 2025, boosting consumer confidence and increasing demand for residential properties.
Urbanization trends are expected to continue, with more people moving to cities for job opportunities, thereby increasing demand for housing in urban centers.
Foreign investment in Malaysia's property market is likely to rise, driven by favorable exchange rates and the country's strategic location in Southeast Asia.
The Malaysian government may introduce incentives for first-time homebuyers, which could stimulate demand and support price growth.
The growing middle class in Malaysia is expected to drive demand for mid-range properties, particularly in well-connected urban areas.
The tourism sector's recovery is likely to boost demand for properties in popular tourist destinations, contributing to overall price increases.
Signals pointing to a property price decrease in Malaysia
Here are some factors suggesting prices could fall:
Rising inflation could erode purchasing power, making it more difficult for potential buyers to afford property, particularly in the lower and mid-tier segments.
Potential increases in interest rates could make borrowing more expensive, reducing the affordability of home loans and dampening demand.
An oversupply of properties in certain areas, particularly in the luxury segment, could lead to price stagnation or declines as developers struggle to sell existing inventory.
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If property prices go up in Malaysia, how much would they increase by?
If real estate prices in Malaysia were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Malaysia appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a lovely 2-bedroom condominium in Kuala Lumpur for 850,000 MYR today, don't be surprised if it's priced between 875,500 and 909,500 MYR this time next year.
To give you a better understanding, here is a table that shows 7 types of Malaysian real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (MYR) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Condominium (60 sqm / 646 sqft) | 900,000 MYR | 927,000 MYR | 945,000 MYR | 963,000 MYR |
| Modern Apartment (75 sqm / 807 sqft) | 1,200,000 MYR | 1,236,000 MYR | 1,260,000 MYR | 1,284,000 MYR |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 2,500,000 MYR | 2,575,000 MYR | 2,625,000 MYR | 2,675,000 MYR |
| Studio (30 sqm / 323 sqft) | 450,000 MYR | 463,500 MYR | 472,500 MYR | 481,500 MYR |
| Loft (80 sqm / 861 sqft) | 1,600,000 MYR | 1,648,000 MYR | 1,680,000 MYR | 1,712,000 MYR |
| Townhouse (150 sqm / 1,615 sqft) | 3,500,000 MYR | 3,605,000 MYR | 3,675,000 MYR | 3,745,000 MYR |
| Investment Property (50 sqm / 538 sqft) | 750,000 MYR | 772,500 MYR | 787,500 MYR | 802,500 MYR |
Everything you need to know is included in our Property Pack for Malaysia
If real estate prices go up in Malaysia, which areas are likely to see the biggest increases?
Today, people who want to move to Malaysia seek a blend of cultural heritage and modern amenities, which George Town, Penang offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Mont Kiara, Kuala Lumpur has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Malaysian market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| George Town, Penang | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Mont Kiara, Kuala Lumpur | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Kuala Lumpur. |
| Bangsar, Kuala Lumpur | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Iskandar Puteri, Johor | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Desa ParkCity, Kuala Lumpur | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Taman Tun Dr Ismail, Kuala Lumpur | Medium | Investment in local infrastructure, such as the extension of MRT lines and renovation of historic areas, is boosting long-term value. |
| Kota Kinabalu, Sabah | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Bukit Bintang, Kuala Lumpur | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Cyberjaya, Selangor | Medium-High | Its proximity to Kuala Lumpur, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Ipoh, Perak | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Damansara Heights, Kuala Lumpur | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Putrajaya | High | Upcoming restoration of government buildings and high-profile cultural projects are driving a renewed focus on this central, administrative location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Malaysia?
In 2025, Malaysia's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in urban areas like Kuala Lumpur.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Kuala Lumpur and Penang are seeing increased interest. Proximity to green spaces, schools, and public transportation is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense urban areas, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Malaysia's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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